As more consumers seek to use various nonbank fintech solutions that depend on bank-based data, the Financial Services Information Sharing and Analysis Center today launched Financial Data Exchange, or FDX, an organization that will facilitate the secure sharing of customers’ data.
FDX has introduced an interoperable standard and operating framework based on FS-ISAC’s Durable Data API. The API gives consumers more choices about safely granting or revoking permissions to their banking data — doing away with the need for “screen scraping” or credential sharing, practices about which ABA has long been concerned from a security perspective. FDX’s board includes representatives from several major banks and nonbank fintech firms that rely on consumer data.
The American Bankers Association supports the initiative, and ABA staff have participated in the FDX launch process. “This is a great example of an industry driven effort to give customers greater protection when they share their financial data, consistent with ABA’s long-standing principles of security, transparency, and control,” said ABA VP Rob Morgan.